I did some quick work on my DTI, I sit right at 40% at the moment, with the possibility of the new mortgage after 20% down, I would be closer to 50%.

Value add Phoenix trades at around 4-4.5 cap and repositioned product closer to 5 cap (class B/C) where Phoenix is generally a 6-6.5 cap historical market.

So this took my taxable income on the property from what I thought was ~$1,000 up closer to $8k.

@Frank Wong 2% success rate is very generous.... .02% is probably closer to the odds

With a property of that size it definitely needs to be ASAP in case a dumb tenants wants to sue you for slipping on a blade of grass and spraining their ankle.

I find that my buildings are running an expense ratio of over 50% and are in some cases closer to 55-60% due to the gas bills.

I could keep the low interest rate for now, then refinance when it gets closer to going up.I like the creativity though.

I chose construction to get me closer to RE investing.

The current sale price, after 1.5 years on the market and nearly $200k in price drops, is not much more than the current owners paid for it in 2020, during the strongest seller's market and steepest appreciation curve that we've ever seen, so consider adjusting your 5% annual appreciation forecast closer to maybe 1%?

Ensure current tenants are month to month for quick path to stabilizationWhen tenants are month to month, getting them closer to market is as simple as a negotiation or notice.